The focus of this year's World Economic Forum (WEF) was largely on the Russian-Ukrainian war. Nevertheless, cryptocurrencies, DeFi and stablecoins also made an appearance. In addition to numerous skeptics among the regulators and heads of state, there were also positive comments from various sides.
The World Economic Forum (WEF) in Davos is an annual event (exception 2021 due to the pandemic), inviting well-known personalities, important politicians and successful entrepreneurs. Guests have the opportunity to discuss various economic, political or other globally relevant developments in order to bring forth different solutions from different perspectives. Digital assets also became a central topic in various discussions. Not least because some renowned personalities from the crypto sector were on site and pointed out the rapid evolution of the industry.
Large-scale crypto presence
Bitcoin pizza and blockchain stalls have already been spotted before the start of the WEF on Monday morning. The pizza stands were set up by Tether Ltd, the operator of the current leading stablecoin. Passersby were offered free slices of pizza to celebrate the so-called "Bitcoin Pizza Day." The historic day celebrates May 22, 2010, when Bitcoiner Lazlo Hanyecz paid 10,000 BTC (nearly $300 million USD today) for 2 pizzas as the first transaction in the real world. But it wasn't just Tether that had an early presence. Posters and logos of competitor Circle were everywhere, as well as one of the largest Swiss crypto investment platforms; Bitcoin Suisse.
Prominent crypto company representatives on hand included Sam Bankman Fried (CEO of crypto trading platform FTX), Jeremy Allaire (CEO of USDC issuer Circle Internet Financial) and Ripple CEO Brad Garlinghouse. In addition to the usual suspects, Fançois Villeroy de Galhau (Govaneur of the National Bank of France), Sethaput Suthiwartnarueput (Govaneur of the National Bank of Thailand), American politician Pat Toomey and even WEF founder Klaus Schwab also expressed their views on crypto.
Bitcoin not suitable as a currency?
Both supporters and critics acknowledged that the entire crypto sector is becoming increasingly relevant in the global economy. However, many insisted that Bitcoin can only be used as an alternative investment and not as a currency. Klaus Schwab warned against the volatility of digital gold, which should not be present in a medium of exchange. Bitcoin is only a speculative asset, he said, which is why it should be regulated as such and monitored by the supervisory authorities.
"Bitcoin may be called a coin, but it’s not money. A prerequisite for something to be called money is to be a stable store of value. The less there is backing [a digital currency]up, the more you should be prepared to take the risk of this thing blowing up in your face." - Kristalina Georgieva, IMF Direktorin
Despite the negative tone among central bankers, industry representatives also pointed to the enormous potential of blockchain-based currencies. Circle CEO Jeremy Allaire, for example, emphasized the increased efficiency from cross-border dollar payments using stablecoins. On the other hand, Sam Bankman-Fried, founder of crypto exchange FTX, went straight on the offensive. In his opinion, consumers often know their way around the fast-growing industry better than some regulators, who spoke condescendingly about crypto assets at WEF instead of protecting users from real dangers.
